Use and Impact of Savings Services For Poor People in Kenya

Publication Date: May 1999
Published by: MicroSave
Document Type: Paper

View this Document   Email this Document

Is the demand for savings services being met?

The purpose of this study is to increase the knowledge and understanding of:

• how poor people in Kenya save to meet their various lump sum needs
• how they use different savings services and systems
• the impact of these systems on their households' financial, social and economic management

• savings avenues available to poor people, especially in rural areas, tend to be illiquid
• micro enterprises require savings services for growth and liquidity management, and these needs are being met by MCIs and their linkages with commercial banking institutions
• Kenya boasts the most diversified financial system in the East African region
• the overall objective of regulation and supervision by the Central Bank is to ensure orderly growth, stability and integrity of the financial system
• potential micro-finance institutions have been set up with assistance from external donors to channel financial assistance to micro enterprises denied access to credit from conventional banking institutions